Home warranty insurance in Queensland: what it covers
Home warranty insurance protects you if your builder doesn’t finish the job or doesn’t fix defects. In Queensland it is run by QBCC, and for most home building work it is compulsory.
When does home warranty insurance apply?
It is compulsory for home building work worth more than $3,300. That value includes materials, labour and GST.
Your builder must take it out on your behalf before work starts. The premium must be paid within 10 business days of signing the contract, or before work starts, whichever comes first. The builder pays the premium. If you want extra cover, you pay for that part.
Ask your builder for proof the insurance is in place before they start.
What does home warranty insurance cover?
- Unfinished work: if your builder doesn’t or can’t finish the job, for example because they went broke or walked off.
- Defects: if your builder doesn’t fix defective work.
- Subsidence: if the building sinks or settles.
A policy covers up to $200,000 for each of these, and you can buy more cover.
How long do you have to make a claim?
These limits are strict, so act quickly.
Non-structural defects, such as a sticking door or cracked tiles:
- you must notice them within 6 months of the work being substantially finished
- you must claim within 7 months of the work being substantially finished
Structural defects, such as problems with the frame, slab or roof:
- you must notice them within 6 years and 6 months of the cover starting
- you must claim within 3 months of first noticing them
Unfinished work: see my builder walked off the job for those time limits.
How do you make a claim?
Usually you must first give your builder a written chance to fix the problem. Then you can complain to QBCC, and QBCC decides whether the claim is covered. Read defective work: how to complain to QBCC.